ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Water for Bombay

 examining the possibility of providing cheaper refinance to the SFCs. While this would be helpful, what is more important is that the Reserve Bank should consider provid- ing finance, not on an ad hoc basis through refinance (though this does help it to maintain a close watch on the operations of SFCs), but as lump-sum long-term loans. At the same time the Governor referred to the stringent resources position and impressed on the SFCs the need for a selective approach to financing problems. The interim budget had provided Rs 49.05 crores for financing institutions (of which Rs 25 crores was earmarked for the IDBI and Rs 5 crores for the IFCI) in 1967-68, against Rs 78.03 crores in 1966-67. Whether the figure would be appreciably different in the final budget is not known at the time of writing, but for once the country and the financing institutions need to face squarely the classic economic problem of rationing limited means among multiple ends.

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